Bain Capital: A failure of capitalism or good business?

I can’t imagine that too many people would argue that our economic system is working just fine. The fact is that it’s been broken for a long, long time. But getting any kind of consensus as to what’s wrong with the system is another matter altogether. A perfect illustration of this happened a week or so ago on the Today Show with Matt Lauer. He asked Jim Cramer, NBC’s on-air stock picker, whether Bain Capital’s strategy of firing workers to reduce labor costs illustrated a failure of capitalism or if it was just good business. Cramer said it was good business, and that seemed fine with Lauer as he cut for a commercial.

Hey guys, it’s both. In the context of capitalism reducing labor costs…regardless of the social consequences of doing so…is part of the play book. And that is a failure of capitalism. It is unsustainable. It is morally bankrupt. And, it will lead to a violent pushback against the oligarchs.

Isn’t it time that we started asking some tough questions about the hallowed ground of capitalism before it’s too late?